North Carolina previously offered filmmakers a 25 percent refundable tax credit for films shot in the state, according to the report. Last year, blockbuster movies including "The Hunger Games," and HBO productions such "Eastbound and Down," received more than $60 million from the state.

Beginning in January, the North Carolina Legislature is replacing the film program with a $10 million grant program, the report states. Five million dollars would be the maximum a movie studio could qualify for under the new laws.

According to the Wall Street Journal, North Carolina House Speaker Pro Tem Paul Stam said the General Assembly will not strengthen the incentive package anytime soon.

"I don't blame the film people at all for wanting money," Mr. Stam said, according to the report. "But why in the world should we be giving tax money to make movies?"

Entertainment news website Deadline Hollywood reports that the program is being scrapped due to Tea Party influence.

Previously, AL.com reported that an Alabama state senator has taken aim at the state's film incentive law, which has paid more than $22 million in tax incentives since it was passed in 2009. Production studios have spent more than $86 million to qualify for the incentives.

The Motion Picture Association of America also reports that the film industry generated 3,238 jobs, nearly $159.6 million in wages, and 886 production-related jobs in 2012-2013. It has also attracted movie stars such as Nicolas Cage to Alabama.

Meanwhile, Alabama is paying in part for the salaries of some high-paid movie stars due to the language of the state's film incentive law. As such, the practice has reduced the incentives available to local production companies.